Enzymotec raises $63.5m in Nasdaq IPO

The lipid-based products developer held the IPO at $14 per share, below its target of $16-18, but the share price rose 30% on Friday.

Enzymotec Ltd. (Nasdaq: ENZY) has raised a net $63.5 million in its Nasdaq IPO on Thursday, after the underwriters exercised their over-allotment options in full. The exercise of options for 661,800 shares boosted the offering to 5,073,800 shares.

Enzymotec, a developer of lipid-based products and solutions for the nutritional and healthcare markets, held the IPO at $14 per share, below its target range of $16-18, but the share price jumped 29.7% on Friday from $14.10 to $18.16.

Enzymotec will use the proceeds to meet its anticipated increased working capital requirements resulting from the expected growth in its business and for other general corporate purposes.

Enzymotec has developed a proprietary method for processing fatty acids (lipids). The nutritional supplements developed on the basis of its method are sold under leading international nutritional supplements labels, as well as under its own label. In the US, the company also sells nutritional supplements, backed by clinical trials, for special indications, such as high cholesterol, heart disease, and memory improvement.

Enzymotec was founded in 1998 at Naiot Venture Accelerator in Yokne'am, on the basis of research by Dr. Sobhi Basheer. It is now based in Migdal Ha'Emek and its CEO is Ariel Katz.

In the first half of 2013, the company had sales of $28.7 million, 84% more than in the corresponding period in 2012, and posted a net profit of $4.7 million, which compares with $845,000 for the corresponding period, and $4.8 million for 2012 as a whole.

Enzymotec is owned by Galam Group Ltd. (Kibbutz Ma'anit), XT Investments Ltd. (formerly Ofer Hi-Tech), GlenRock Israel, Millennium Material Technologies Fund, and Mexico's Arancia Industrial SA de CV.

Published by Globes [online], Israel business news - www.globes-online.com - on September 29, 2013

© Copyright of Globes Publisher Itonut (1983) Ltd. 2013

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